Curious about where the housing market is headed in 2025? The good news is that experts are offering some promising forecasts, especially when it comes to two key factors that directly affect your decisions: mortgage rates and home prices.
Whether you’re thinking of buying or selling, here’s a look at what the experts are saying and how it might impact your move.
Mortgage Rates Are Forecast To Come Down
One of the biggest factors likely affecting your plans is mortgage rates, and the forecast looks positive. After rising dramatically in recent years, experts project rates will ease slightly throughout the course of 2025.
While that decline won’t be a straight line down, the overall trend should continue over the next year. Expect a few bumps along the way.
Home Price Projections Show Modest Growth
While mortgage rates are expected to come down slightly, home prices are forecast to rise—but at a much more moderate pace than the market has seen in recent years.
Experts are saying home prices will grow by an average of about 2.5% nationally in 2025.
This is far more manageable than the rapid price increases of previous years, which
saw double-digit percentage growth in some markets.
With mortgage rates expected to ease and home prices projected to rise at a more moderate pace, 2025 is shaping up to be a more promising year for both buyers and sellers.
If you have any questions about how these trends might impact your plans, let’s connect. That way you’ve got someone to help you navigate the market and make the most of the opportunities ahead.
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